DTN Midday Grain Comments 12/13 11:22

DTN Midday Grain Comments 12/13 11:22 Corn, Wheat Higher at Midday Trade is moderately higher at midday; trade remains slow. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the DOW futures up 80. The interest rate products are higher. The dollar index is 17 points lower. Energies are mixed with crude up .10. Livestock is mixed with cattle higher. Precious metals are lower with gold down $4.90. CORN Corn trade is 2 to 3 cents higher at midday with trade near the daily highs. Trade has been slow we have just slowly moved higher. Ethanol margins are very positive which should support production in the near term, along with keeping basis steady to firmer near plants. Crude gave back much of the gains yesterday, but remains over $50 which should help, with blender margins fairly stable. Feed grain exports are expected to remain solid even if they aren't hitting the daily wires. On the March chart support is at the 50-day major moving average at $3.56, then the $3.41 3/4 2-month low. Resistance is at the $3.64 1-month high. SOYBEANS Soybean trade is mixed at midday with two sided trade again seen today. Meal is $1 to $2 higher and oil is 10 to 20 points lower. The South American forecast looks to keep Argentina warm and dry with some needed rain last this week with Brazil remaining in good shape. Forecast agreement is not great at this point which will need to be watched closely. China remains active on the daily export wire although no sales were announced today. So good demand items should continue to support beans on breaks, and big supplies limit buying and bring in farmer selling on strength. On the January chart the 20-day at $10.24 is now support with resistance at the $10.36 10-day then the $10.65 4-month high. WHEAT Wheat trade is 2 to 6 cents higher with trade testing nearby resistance at midday. The cold extended forecast and the weaker dollar helped trade to bounce back from the early lows again today. Supplies will continue to weigh on the market and limit upside, with Australian harvest continuing to move forward. For this week wheat should follow the row crops and world weather, with any export news a bonus. Saudi Arabia is actively seeking wheat. On the Kansas City March chart support is at the $3.99 3/4 contract low printed Wednesday, resistance is at the $4.18 20-day moving average which is the lowest major moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.